Cessation of Worldwide Disclosure Facility
Tax payers have a few weeks left to take advantage of The Worldwide Disclosure facility. The Worldwide Disclosure, which opened in September 2016 is closing from 30 September 2018. The disclosure dealt with income and gains which have an offshore element in them.
From 30 September 2018, there will be new legislation to replace the Worldwide Disclosure, called “Requirement to Correct”. Individuals disclosing undeclared income and gains will subject to harsher penalties under this regime.
The Financial Secretary to the Treasury, Mel Stride MP, said:
Since 2010 we have secured over £2.8bn for our vital public services by tackling offshore tax evaders, and we will continue to relentlessly crack down on those not playing by the rules.This new measure will place higher penalties on those who do not contact HMRC and ensure their offshore tax liabilities are correct. I urge anyone affected to get in touch with HMRC now.
HMRC have stated:
“From 1 October more than 100 countries, including the UK, will be able to exchange data on financial accounts under the Common Reporting Standard (CRS). CRS data will significantly enhance HMRC’s ability to detect offshore non-compliance and it is in taxpayers’ interests to correct any non-compliance before that data is received.”
Worldwide Disclosure Facility is used mostly for foreign income and property. HMRC have stated that “over 17,000 people have already contacted HMRC to notify the department about tax due from sources of foreign income, such as their holiday homes and overseas properties.”
HMRC have provided examples of what could be construed as offshore assets : art and antiques; bank and other savings accounts; boats; cash; debts owed to you; gold and silver articles; government securities; jewellery; land and buildings, including holiday timeshare; life assurance policies […]